Ok I know what you’re thinking, “Why do I need life insurance.” Most folks I meet with have a negative view of what was once a must have product in everyone’s portfolio. Unfortunately most agents have sold this multi-functional product short and promoted it just for death benefit. But there’s more to it. Here though are some of the benefits:
* This product can replace your income. All of us will die sometime…it is a fact! The problem is we do not know when. When you die your income earnings potential goes with it. How will this impact your family, your wife or husband? It could be devastating especially if your spouse is not working. This product can replace that income and help them live comfortably without fear.
* This product helps you create your own bank! Wouldn’t it be nice to not have to go to the bank for a loan? This product has monetary value that you can borrow from tax free and you can chose whether to pay it back or not. It grows TAX FREE, comes out in retirement TAX FREE & goes to your heirs TAX FREE! (Are you seeing a pattern here?)
* This product makes an awesome gift! You could buy this product for a child or grand-child to help pay for college, create their own bank AND provide a substantial retirement fund. It would benefit them for the rest of their lives creating an excellent legacy for you – THEY’LL NEVER FORGET YOU!
* This product is real property. In comes to full value exactly when you need it. It pays a higher amount at death or full accumulated value at retirement. It’s property so the Feds require the value to be declared in your estate but their are ways to avoid this scenario.
Well maybe you’ve guessed it by now? This product is LIFE INSURANCE! That may surprise you. Most agents have not done a very good job explaining all the LIVING BENEFITS of this fantastic financial product. Most of you probably think of it only for it’s death benefit but that’s not the whole story.
The rich figured out a long time ago guy it was the best place to put earnings to get back TAX FREE BENEFITS. The government also figured this out began to set regulations to get rid of the tax loop hole but there are ways around that as well.
The new generation of Life Insurance also has living benefits that allow you to access a percentage of the death benefit for things like:
* Long Term Care
* Terminal Illness
* Tax Free retirement income
Don’t follow the old adage “Buy term and invest the rest”. First of all NO ONE every saves the difference. Plus only 2% of folks that buy term every collect the benefit. That means they’ve paid into a product for years that never gave them a return on that money; what a waste! Click here for a FREE analysis to see how Life Insurance might benefit your retirement plan.
Safe Savings – Roger H. Ely
Roger Ely offers safe money retirement strategies to help maximize your and convert your retirement savings into retirement income guaranteed for life, provide for continued growth, help over come Long Term Care costs, and guarantee you Never Lose Another Dime! More information is available at [letstalkretirement.com]
Article Source: EzineArticles.com/expert/Roger_H_Ely/689656
Designed right, a Non MEC Life Insurance contract can generate tax free retirement income, without ERISA regulations and without taxing your social security benefits. Eric and Steve walk you through all the tax items debunk the tax myths of life insurance and call out the critics who don’t know what they’re talking about or at the very least are grossly misinformed.
The caveat on tax free income using life insurance: The life insurance policy must be designed as a non modified endowment contract. The contract must be kept in force for the life of the insured. If the maturity date of the contract does not contain a maturity date extension provision, the client should be notified in writing in the application and initialize it. During distributions, any withdrawals of basis or policy loans of gain must comply with the force out rule, guideline annual or guideline single or Cash Value Accumulation tests. The following tax advantages or tax favored treatment can accompany non MEC life insurance contracts.
No Ordinary Income tax, No Alternative Income Tax (Although death benefit proceeds under certain corporately owned contracts could be treated as a preference item and consequently exposed to the alternative minimum tax, but not the income scenario we’re addressing.) No Capital Gains Tax Trap (Although life insurance generated income isn’t subject to capital gains like many other investments, the capital gain still is used to calculate the provisional income test for social security benefit taxation. The trap is the capital gain is taxed at 15%, but the capital gain income inadvertently could cause social security benefits to be taxed at ordinary income tax rates.) No Social Security Benefits Taxed, No Pre 59 ½ 10% Early Access Penalty, No Required Minimum Distribution Penalty and No Phantom Income Tax on Constructive Receipt of Policy Loans and/or Internal Interest loans with maturity dates that provide extension provisions on the life of the insured.
You view and download the white paper and the tax free series at www.MaxRetirementReport.com as well as the tax advantaged five video series were recorded last month at www.brokersalliance.com/taxadvantagedproducts